What is the estimated cost for land (3 1/2 to 5 acres) for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | |||
|---|---|---|---|
| Royalty | 5% of Gross Rooms Revenue (“GRR”) | Monthly, on the 15th of the following month (Payable to Holiday) | Note 1 |
| Services Contribution | 3% of GRR | Same as Royalty | Note 2 |
| Initial Marketing Contribution for the Loyalty Program | $10.00 per approved guest room. | At same time as 1st Royalty Payment (one-time charge) (Payable to SCH) | Note 3 |
| Loyalty Program Contribution | 4.55% of Qualifying Full Folio Revenue from Loyalty Program members 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members | Same date as Royalty (Payable to SCH) | Note 3 |
| Capital Reserve | Up to 5% of Gross Revenue (see Paragraph 13.O of License). | Monthly if required by Holiday | Note 4 |
| Technology Services Fee | $17.40 per room, per month. | Monthly (Payable to SCH) | Note 5 |
| Revenue Management System: IHG Concerto™, Yielding & Price Optimization; or Revenue Analytics’ N2 Pricing | Costs of between $30 and $120 per month may apply for competitive rate insight shopping. For hotels currently subscribing to RevenueStrategy360, these costs may be waived. | Monthly (Payable to SCH) | Note 6 & Item 11 |
| TYPE OF FEE | |||
| AMOUNT $2,500 /standard • Fail fourth quarter = Assess $5,000/standard • Capped at $5,000 per quarter | DUE DATE | REMARKS | |
| Employee Engagement Survey | $7 to $12 per employee each year | Annually (Payable to designated third party provider) | Note 25 |
| F&B POS Support | $45.00 per workstation per month | Monthly (Payable to an approved supplier) | Note 7 |
| Comfort Letter Processing Fee | $2,500 for the preparation and processing of any mezzanine, replacement or subsequent comfort letters after the initial senior lender letter. | Upon Demand (Payable to Holiday) | IHG may waive this fee in its sole discretion. |
| Qualifying Room and Meeting Revenue includes Hotel revenue from accommodation (room only | |||
| booked on behalf of others via the IHG Business Rewards) and/or Hotel revenue from rental of guest | |||
| rooms, meetings, social, or catered events to include revenue from meeting room hire, food and | |||
| beverage, and/or other revenue associated with the meeting or event at the hotel’s discretion (formerly | |||
| known as IHG | ® Meeting Rewards) | . IHG® Business Rewards points are capped at 60,000 per meeting | |
| or event, while the Hotel has sole discretion to award more than 60,000 points for any such meeting or | |||
| event. | IHG One Rewards Measured Standards are | ||
| measured and enforced by the Loyalty Program to ensure consistency in the delivery of the program | |||
| to its members. Standards are based on calendar quarter thresholds. Hotels are measured at the end | |||
| of each calendar quarter for compliance. If a Hotel fails to meet the threshold for a quarter, it will have | |||
| ESTIMATE FOR A 250-ROOM CROWNE PLAZA OR CROWNE PLAZA SUITES HOTEL: | |||
| Type of Expenditure | Amount | Method of Payment and When Due | To Whom Payment Is to be Made |
| Application Fee | $125,000 | Lump sum with | H oliday |
| (Note 1) | application | ||
| Property Improvement Plan | $ 0 to $10,000 | Before you | H oliday |
| (“PIP”) fee | submit your | ||
| (Note 1) | application | ||
| Land (3 1/2 to 5 acres) | As required | 3rd parties | |
| (Note 2) | |||
| Building Construction | $9,952,000 to $ 66,419,000 | As required | 3rd parties |
| ( Note 2) (Note 3) | |||
| Furniture, Fixtures & Equipment (Note 2) | $5,414,900 to $ 8,171,000 | As required By suppli |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the cost for land, which should be between 3 1/2 to 5 acres, is not specified. The FDD states that payment is 'as required' and is to be paid to third parties.
This means that prospective Crowne Plaza franchisees will need to conduct their own due diligence to determine the actual cost of land in their desired location. Land costs can vary significantly depending on factors such as location, zoning, and market conditions. It is important to research local real estate prices and consult with real estate professionals to get an accurate estimate.
While the FDD does not provide a specific cost estimate for land, it does list other estimated expenses for a 250-room Crowne Plaza or Crowne Plaza Suites hotel, such as building construction, and furniture, fixtures & equipment. These costs, along with the land costs, should be carefully considered when evaluating the overall investment required to open a Crowne Plaza franchise.